Wendys Co (NASDAQ: WEN)'s new set of objectives and targets through 2020 — including the addition of 1,000 locations — are "intriguing" but overshadowed by valuation concerns, according to Oppenheimer.

The Analyst

The Thesis

Wendy's outlook through 2020 implies a 75-percent growth in free cash flow to $300 million and requires a system sales acceleration from 3.5 percent to 5 percent, Bittner said in the Monday initiation note. (See the analyst's track record here.)

The third-largest burger restaurant chain guided its same-store sales to grow by 2 to 3 percent annually, but achieving this objective requires the following, Bittner said:

An annual 60-to-70 basis point tailwind from remodels each year.

Momentum from the value menu remaining "highly effective."

Market share tailwinds from the quick-service industry as a whole remaining in place.

Despite an encouraging outlook, the analyst named the following reasons why Oppenhimer cannot justify a bullish stance on Wendy's:

The attractive 2020 targets are already factored into the Street's estimates.